A mechanism to deal with rental increases in Dubai, according to the “Smart Index”

The Dubai Land and Property Department confirmed that the application of the “Smart Rental Index” contributed to resolving the general inflation in Dubai for the year 2025, as the index contributed to controlling and organizing the mechanism of rental increases, which reflected positively on the cost of living in the city.

The department stated in a statement that the index covered all residential areas in Dubai, including the main areas, special areas with special development, and free zones, and depends on artificial intelligence technologies to provide accurate and unified evaluations for rental prices, which enhances transparency and achieves justice in the real estate market.

And “Dubai Land” explained that the new amendments in the rental values ​​depend on the smart index, which determines the due increase based on the data extracted from various factors, such as the values ​​of rental contracts in the building, and the average rental values ​​in the region, in addition to the building classification.

The department continued: “In addition, a clear mechanism was determined to deal with increases in rents, based on the timing of the lessor’s rented notification and the date of signing the contract renewal.”

Rental increases mechanism

According to the “Dubai Land”, this mechanism indicates that in cases where the lessor has notified the tenant to increase the rent according to the index 90 days before the end of the contract, the increase will be applied if the index emphasized the entitlement to the property for it..

In the event that the new index indicates the real estate entitle.

In the event that the lessor lesson was informed of the increase in the fare 90 days ago, and the property deserved the increase at the time according to the old index, but the new index indicated that the property was not entitled to the increase, so the date of renewal is seen, so that the old index is applied if the contract is renewed before this year (2025), If the renewal is signed during the current year 2025, the new index is applied.

Transparency and justice

The executive director of the real estate registration sector in the Dubai Land and Property Department, Majid Al Murri, said that the launch of the smart rent index recently was a basic step towards ensuring transparency in determining rents, and confirmed Dubai’s commitment to digital transformation and promoting justice in the real estate market. He added: «The smart index contributes to reducing inflation, and the parties concerned help make investment decisions based on reliable data».

Al -Murri continued: «The index sets fixed criteria to determine the rental increases in accordance with the actual rental values ​​and based on market updates. This comes at a time when confidence in the rental market in Dubai is increasing, as more than 900,000 lease contracts were recorded in 2024, with a growth rate of 8% compared to the year 2023».

And “Dubai Land” stressed that, in the context of its commitment to keeping pace with market developments, it will continue to update the smart rent index periodically, in line with the changes in the rental market, in order to ensure a fair balance between the leased two and tenants in the Emirate of Dubai.